Business to McGinn: Collect parking fines, don’t raise taxes

Seattle’s business leaders on Thursday sent a letter to Mayor Mike McGinn, reiterating a call to not raise taxes in the face of big budget deficits. Instead, they want him to crack down on people who don’t pay parking tickets.

This week city officials revealed that next year’s operating budget had jumped $11 million, to $67 million. McGinn is contemplating widespread cuts to city services and layoffs of municipal employees.

In a letter to the mayor, the Greater Seattle Chamber of Commerce said while revenue is coming in less then projected for next year, since 2001 general fund revenues are up 18 percent when adjusted for inflation.

“The City’s budget shortfall is not driven by decreasing revenues, but rather as a result of expenses that are increasing at a rate greater than revenues and a rate greater than Seattle’s Consumer Price Index (CPI). Given this important context, we believe ample opportunity exists to balance the budget without negatively impacting employers or core City services,” the letter said.

Business leaders asked McGinn to:

Collect a higher percentage of parking fines. Citing a KIRO-TV report, the Chamber said the City is owed $52 million in unpaid tickets.

Prioritize replacing the Alaskan Way Viaduct with a tunnel. On this point, the Chamber said a “city-wide tax source” was an appropriate way to help pay for Seattle’s more than $900 million share of the controversial, $4.2 billion tunnel project. McGinn opposes the tunnel, saying it’s too expensive and not environmentally sound. But business leaders say the tunnel is vital for commerce.

Prioritize public safety funding. Earlier this year McGinn suspended hiring of 20 additional police officers as part of a broader push to hire 100 new cops. At more than $2 million, McGinn said the price tag for the 20 new officers was too high given the bad budget situation. The Chamber says: “We recommend
identifying at least 20 non-essential positions within City government and redirecting the salary and benefit savings from these positions to hire new officers.

Use local companies to provide services to taxpayers. The letter cited the use of a ” a minority-owned, union shop to handle its printing needs. The shop prints City materials for less money, in less time and of superior quality than when it was printed in-house. Numerous operations and maintenance functions throughout the City could be performed by local companies at potentially lower costs.”

Avoid expanded and new regulations.

Cut payroll. “Numerous local private sector employers have reduced work schedules, staff levels, and frozen employee salaries and benefits. Several private sector unions have also recently agreed to freeze wages…City government should not ask Seattle residents who are unemployed to support pay increases for City employees during these challenging economic times.”

Because of declining tax revenues, McGinn has already cut $12 million from the 2010 budget. Most city departments were asked to find 3 percent in savings this year, while the police and human services branches were asked to identify 1.5 percent that could be reduced from their budgets.

McGinn has asked city workers to give up cost-of-living raises for next year. Firefighters have agreed, but others are balking, suggesting instead that managers and consultants should be axed instead.